Health Savings Accounts offer you control of your health care dollars. With significant tax advantages and individual ownership, you pay lower taxes and keep more of your money with an HSA.
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Tax Savings—You Pay Less Income Tax!
You Keep More Of Your Money!
How do I open a Wilson Bank & Trust HSA…
Eligible medical expenses are defined as those expenses paid for care as described in Sections 223 (d) of the Internal Revenue Code. Below are two lists (Reimbursable Medical Expenses and Non-Reimbursable Medical Expenses) which may help determine whether an expense is eligible for HSA reimbursement. The lists are intended to serve as a quick reference and are provided with the understanding that Wilson Bank & Trust is not engaged in rendering tax advice. For more detailed information, please refer to IRS Publication 502 titled “Medical and Dental Expenses,” Catalog Number 15002Q. Publications can be ordered from the IRS by calling 1-800-TAX-FORM (829-3676), or viewed, printed or downloaded in PDF format. If tax advice is required, seek the services of a CPA.
Reimbursable Medical Expenses:
Non-Reimbursable Medical Expenses:
|Q:||What is a Health Savings Account?
HSA is an individual bank account that allows you to pay
for current health expenses and save for future qualified
medical and retiree health expenses on a tax-advantaged basis.
|Q:||Why Should I invest in a Health Savings
|A:|| If you or your
employer are tired of the high costs of health insurance
and would prefer to keep that money for yourself to spend
on health expenses or save for the future, you should look
into Health Savings Account.
|Q:||Who is eligible for a Health Savings Account?
|A:||To be eligible
for a Health Savings Account, an individual must be covered
by a High Deductibe Health Plan (HDHP), must not be covered
by other health insurance (does not apply to specific injury
insurance and accident, disability, dental care, vision care,
or long-term care), is not eligible for Medicare, and can't
be claimed as a dependent on someone else's tax return.
|Q:||What is a High Deductible Health Plan (HDHP)?
|A:||A High Deductible
Health Plan is a health insurance plan with a minimum deductible
of $1,000 (self-only coverage) or $2,000 (family coverage).
The annual out-of-pocket (including deductibles and co-pays)
cannot exceed $5,000 (self-only coverage) or $10,000 (family
coverage). HDHPs can have first dollar coverage (no deductible)
for preventative care and higher out-of-pocket (co-pays and
coinsurance) for non-network services.
|Q:||Who can contribute to a Health Savings
Contributions to HSAs can be made by either the employer or
the individual, or both. If contributions are made by the
individual, it is an "above-the-line" deduction.
If contributions are made by the employer, it is not taxable
to the employee (excluded from income).
|Q:||How much can I contribute to a Health Savings
contribution for 2005 is the lesser of the deductible amount
under the HDHP or $2,650 for individuals or $5,250 for family
coverage. These dollar amounts will be adjusted for inflation
|Q:||Do Health Savings Account funds roll over
year after year and get invested?
|A:||Yes, any unused
funds in a Health Savings Account roll over each year.
|Q:||Who has control over the money in a Health
|A:|| With Wilson
Bank & Trust as trustee, account holders have complete
control over their funds. Other trustees may impose limits
|Q:||Is there an IRS approved list of medical
expenses from which I can use My HSA dollars?
|A:||Yes, there is
a list of allowable expenses provided on the home page of
this website under "Eligible Expenses". If you
would like a more thorough list provided by the Internal
Revenue Service, go to www.irs.gov/pubirs-pdf/p502.pdf.
In general, you can use your tax-advantaged HSA dollars on all medical, dental (indcluding braces for your children) and vision expenses, chiropractic visits, and even acupuncture, but not on your insurance premium, unless you are unemployed and are collecting Federal unemployment benefits.
|Q:||Will I have to pay tax penalties on the
monthly fees my HSA custodian deducts from my account?
|A:||The IRS has
ruled that nominal bank and custodial fees withdrawn directly
from the account are allowable withdrawals, and therefore
are not subject to taxes or penalties.
|Q:||How do I submit a change of address or
Bank & Trust, or your employer representative for the
|Q:||Can I use my Health Savings Account for
|A:||Yes, you can
spend money out of your Health Savings Account for non-medical
expenses; however, you have to pay income tax and a 10 percent
penalty for a non-medical withdrawal prior to age 65.